Dutch KSA imposes record fine on unlicensed gambling site
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29 Nov 2024 •
Reading time: 3 minutes The Dutch Gaming Authority (KSA) has imposed a fine of €1.1 million on Blue High House. This company, based in Panama, offered online gambling in the Netherlands without a license. The decision was announced on November 22. The decision was already made on November 5. Blue High House has six weeks to pay the fine, otherwise interest can be added.
According to the KSA, Blue High House violated Dutch regulations by offering gambling without a local license. The standard fine for this type of violation is €600,000, but the seriousness of this case led to a much higher sanction.
This is not the first time that Blue High House has been punished. In June of this year, the company was already fined €129,000 for similar violations.
Ongoing violations by Blue High House
The problem with Blue High House started in December 2021, when the KSA first investigated the website Betonline.ag. The regulator conducted additional investigations in January and March 2022, and again in March and January last year.
During these investigations, the KSA discovered that Dutch players were able to access the site, create accounts, deposit money and gamble. All of this was done without Blue High House having a Dutch license.
The KSA noted that no technical measures had been taken to prevent Dutch players from accessing the site. Furthermore, the games of chance offered on Betonline.ag were not permitted in the Netherlands at all.
In September 2023, the KSA issued an initial order to cease operations. Blue High House failed to respond, which led to the first fine earlier this year.
Reason for the increased fine
The KSA stated that the high fine amount was justified given the circumstances. The basic amount of €600,000 for operating without a license was increased by additional amounts. This included:
- €150,000 for offering illegal games of chance;
- €75,000 for using unapproved payment methods;
- €75,000 for offering an autoplay function;
- €75,000 for the lack of play limits;
- €75,000 for the lack of age verification;
- An additional amount for unspecified “special circumstances.”
Although Betonline.ag has since ceased operations in the Netherlands, the KSA continues to monitor the website. If operations resume or if Blue High House uses other channels, the company can expect further sanctions.
KSA promises tough approach to illegal gambling sites
Michel Groothuizen, chairman of the KSA, strongly opposed Blue High House’s actions via Betonline.ag. He pointed out that functions such as autoplay and the lack of play limits can encourage risky gambling behavior.
“The Dutch gambling market is legal, so people who want to gamble can do so safely,” Groothuizen said. “With illegal providers, we often see that there is no attention for risky gambling behavior.
“For example, players on this site could create an account without verifying their age, which also allowed minors to gamble. In addition, we saw features such as autoplay and turbo play, which can encourage excessive gambling, and there were no play limits. KSA takes tough action against these types of illegal websites.”